Democrats propose higher estate taxes to pay for their plan to close the racial wealth gap
House and Senate Democrats this week proposed a bill that would instruct the federal government to give anyone born in the U.S. after 2005 a $1,000 “seed savings account,” and then make contributions to that account until they are 18 — a plan that sponsors say is aimed at closing America’s “racial wealth gap.”
If enacted into law, the bill would transfer billions of dollars in wealth from high-income families to low-income families, as it would fund the program by significantly increasing estate tax revenues.
The “baby bonds” bill, from Sen. Cory Booker, D-N.J., and Rep. Ayanna Pressley, D-Mass., would give children up to $2,000 a year in the lowest income families, an amount that would drop as families earn more. If a family were to make more than 500% of the federal poverty level, their kids would only receive the initial $1,000 payment.
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